Discrimination in Installment Lending By Retailers of Consumer Durables in Apartheid South Africa

Cites strong evidence of discrimination in the fact that black households are 13 percent more likely to not have a hire purchase loan granted to them than other households equivalent in all ways except race.

In light of this, suggests that formal loans may be extended to more households by removing obvious clues to a potential borrower's race from the written loan application for hire purchase loans.

Further suggests that supply-loan rationing to all South Africans can be reduced by relaxing or repealing the Usury Act so that small, short loans can be made profitable to other consumer credit lenders who can then compete with hire purchase lenders.